Portuguese-speaking countries interested in fund for infrastructure and development financing

19 March 2018

The Portuguese-speaking countries are very interested in infrastructure and development financing, so it is therefore necessary to think of an alternative instrument to the current China-Portuguese-speaking Countries Cooperation and Development Fund, which has other characteristics, such as longer maturities, according to the Deputy Secretary-General of Forum Macau.

Rodrigo Brum, in an interview with the weekly Plataforma, on the occasion of the 15 years of the Macau Forum, considered that there is a lack of knowledge of the characteristics of the Development Cooperation Fund between China and the Portuguese- of its operating mechanisms.

“The Cooperation and Development Fund is a venture capital instrument – pure and simple venture capital – with internationally recognised characteristics: capital inflow, with a minority stake, with a five, six or seven year exit plan, with return on invested capital and a pre-established rate of return,” Brum said.

According to the Deputy Secretary-General of Forum Macau, “it is a financing instrument for companies with great dynamism and high profit forecast and in a short time. Even if there is an improvement in its operation, it should be used as such by dynamic projects in some of the countries with the strongest economies,” he said.

Brum also said that it is expected that “from this year there will be missions of Forum Macau to all eight Portuguese-speaking countries, preventing the current situation in which there are countries that have not been visited for four or even five years. It is therefore intended to strengthen the link with each and every country by improving the knowledge of these forum mechanisms and opportunities in the Chinese market in these countries.”

Referring to the fact that not all countries are permanently represented at Forum Macau, the Deputy Secretary-General said that what is really at stake is understanding the advantages that a platform of common interests of Portuguese-speaking countries can have in economic and trade terms.

“These eight Portuguese-speaking countries are meeting in several multilateral organisations, but no other organisation has these objectives focused on the development of their economies, the business activity of their companies, investments and the increase of trade between them. And along with this, the forum is precisely located in the main twenty-first century economy, China, which has an active presence in the Forum and its activities.”

Brum said in an interview with the Macau weekly that the platform provided by Forum Macau should not be overlooked, “either for a large group of Brazilian small and medium enterprises that can benefit from the advantages of approaching via Macau, to the increasingly structured Guangdong-Hong Kong-Macau Great Bay Area, or even for business development with the remaining Forum partners.”(macauhub)